SB2684

SECTION 1. The legislature finds that the department of land and natural resources' division of boating and ocean recreation is responsible for operating and maintaining the state's small boat harbors among the division's other responsibilities.

The legislature further finds that, during the regular sessions of 2018 and 2021, the legislature enacted legislation to grant the division of boating and ocean recreation fee increases to address the need to generate sufficient revenue to discharge the divisions small boat harbor responsibilities.

The legislature also recognizes that the interests of the department of land and natural resources and those who are permitted to live aboard their vessels may appear to be in conflict.

The purpose of this Act is to clarify the department of land and natural resources' responsibilities and procedures for the cost-effective maintenance of harbors.

SECTION 2. Section 200-9, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Vessels used for purposes of recreational boating activities that are also the principal habitation of the owners shall occupy no more than one hundred twenty-nine berths at Ala Wai boat harbor and thirty-five berths at Keehi boat harbor, which is equal to fifteen per cent of the respective total moorage space that was available as of July 1, 1976, at the Ala Wai and Keehi boat harbors[.]; provided that:

(1) The department may accept principal habitation permit applications from holders of mooring permits upon receipt of a completed application on a form prescribed by the department, together with the payment of an application fee set by the department;

(2) The department may issue available principal habitation permits up to the maximum amount set by this section; and

(3) The department may establish a waiting list and corresponding waiting list fee for principal habitation permit applicants to hold their place in the queue for pending principal habitation permit applications."

SECTION 3. Section 200-10, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The permittee shall pay moorage fees to the department for the use permit that shall be based on but not limited to the use of the vessel, the vessel's effect on the harbor, use of facilities, and the cost of administering the mooring program; provided that:

(1) Except for commercial maritime activities in which a tariff is established by the department of transportation, moorage fees shall be established by appraisal by a state-licensed appraiser approved by the department;

(2) For commercial maritime activities in which a tariff is established by the harbors division of the department of transportation, the department may adopt the published tariff of the harbors division of the department of transportation or establish the fee by appraisal by a state-licensed appraiser approved by the department;

(3) An application fee shall be collected when applying for moorage in state small boat harbors and shall thereafter be collected annually when the application is renewed; provided that the application fee shall be set by the department[;] except as otherwise provided by law;

(4) If a recreational vessel is used as a place of principal habitation, the permittee shall pay[~~, in lieu of the moorage~~] a mooring permit fee as required by paragraph (1), and a [~~monthly liveaboard~~] principal habitation fee [~~that shall be~~ ~~two times the moorage~~] equal to the mooring permit fee that would [~~otherwise~~] be assessed for a vessel of the same size;

(5) If a vessel is used for commercial purposes from the vessel's permitted mooring, the permittee shall pay, in lieu of the moorage fee required by paragraph (1), a monthly fee that shall be the greater of:

(A) Three per cent of the gross revenues derived from the use of the vessel;

(B) $1.50 per passenger carried for hire; or

(6) The department is authorized to assess and collect utility fees, including electrical and water charges, and common-area maintenance fees in small boat harbors; provided that if the utility fee is paid by the permittee, the permittee shall only be responsible for paying common-area maintenance fees; provided further that if a permittee has a properly installed meter or sub-meter, the utility fees shall be based on the metered or sub-metered usage records; and

(7) All fees established by appraisal pursuant to this subsection shall be set at fair market value[.]; provided that no fee may be changed more than once in any twelve-month period commencing on the date on which the prior fee became effective."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2684
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII